If we compare on terms of effectiveness, it could be concluded that there’s no difference between the two. Generic drugs and brand-name drugs are regulated by the Food and Drug Administration (FDA). Both the generic and brand-name drugs use same active ingredients and work in the same way in the body.
A generic drug have same chemicals as lower-cost version of a brand-name drug, costing more than 50% less! A brand-name drug and its generic drug have the same chemical components, safety, strength, usage directions, quality, and performance.
Brand Name Drugs are also called as innovator drugs. These were initially marketed as new chemical entities. These are somewhat expensive due to high invention cost whereas, generic drugs are the copy of brand name drugs. These are generally less expensive.
Big-brand companies have more expenses to cover. They had to cover the bill for expensive clinical trials and all other costs related to developing the medication, and also, advertising and marketing campaigns don’t come cheap. Companies cover up all such expenses from customers through hike in prices. Big-brand companies spend a lot of money to convince consumers that their brands work better, while generic or store brands stick with advertising in the store, on the shelf and on the packaging.
Generic drugs are cheaper because the manufacturers don’t have to go through the lengthy research and testing process necessary to develop new drugs. They try to maintain the health care costs affordable, which is obviously important. However, we need such companies that are willing to take the challenges for developing new drugs to improve the ability to treat and cure a disease at the earliest. Both are important pieces of the overall puzzle.
Both the drugs are safe as they meet the exact same standards for effectiveness, safety and performance. The only difference is that brand names use advertising, marketing, and other ways to sell their product.